FedEx and UPS hit as Amazon 'plots shipping expansion'

Amazon is reportedly embarking on further expansion of its shipping services, testing a programme to pick up from companies that sell on its site. Investors dumped shares of existing shipping companies FedEx and UPS in response to the news. Amazon already offers shipping services to merchants that use its warehouses. Under its Fulfillment by Amazon and other programmes, Amazon handles delivery of products that merchants store in the firm's warehouses, including to non-Amazon customers. As Amazon's network expands, it has led to increased questions about how well longstanding shipping companies such as FedEx and UPS - which count Amazon as a customer - will compete.